Skip to main content

You can Redeem Liquid Funds Instantly

 





Liquid funds with instant redemption facility offer investors a clear advantage over bank FDs.

Interest rates on bank fixed deposits are likely to fall further because of the surplus liquid ity that's been pumped into the system after the demonetisation exercise. Liquid and ultra short-term funds have emerged as a more viable alternative for parking the excess cash lying in bank savings accounts. These funds offer a much higher yield for investors.

However, while bank fixed deposits (FD) offer instant liquidity to investors, liquid funds, until recently, took at least one business day to return investors' money.This has changed recently, with two prominent fund houses--Reliance Mutual Fund and DSP BlackRock Mutual Fund--offering instant redemption facility on their liquid funds.


Both these ultra-short term schemes, allow investors to withdraw their money any time by placing a redemption request and the money is credited to the investor's bank account instantaneously. Investors can redeem up to 95% of the amount in their account, subject to a maximum of `2 lakh per day. The minimum withdrawal amount is `500 for Reliance Money Manager and `100 for DSP BlackRock Money Manager Fund. While other fund houses are expected to follow suit, the market watchdog, Securities and Exchange Board of India (Sebi), is reportedly exploring the option of making instant withdrawals, subject to certain caps, mandatory for liquid funds.


Reliance mutual fund also offers Any Time Money Card--an ATM cum debit card--which offers easy accessibility to money parked in its liquid schemes through Visa-enabled ATMs. Investors can withdraw upto 50% of their corpus in the scheme, or `50,000 per day, whichever is less. It also doubles up as a debit card, where investors can spend upto 50% of the corpus or `1 lakh, per day. This facility has been extended to investors of Reliance Liquid Fund--treasury and cash plans--and Reliance Money Manager Fund.


The added benefit of easy liquidity makes liquid funds a better alternative to both savings bank account and bank FDs. "With instant redemption facility, liquid funds now carry a distinct advantage over the traditional savings avenues.They are particularly useful for those with a large balance in their savings accounts, which is highly tax inefficient for interest income in excess of `10,000. Even a sweep-in fixed deposit facility--where funds can be transferred between savings bank and fixed deposits--would yield sub-optimal returns compared to Investing money in a liquid fund.


Liquid funds are essentially very low-risk funds, investing in highly liquid money market instruments with a residual maturity of not more than 91 days. As such, the volatility in these instruments is very low. Liquid funds have delivered around 7.6% over the past one year.Since these are debt funds, gains are taxed in accordance with one's income tax slab, if held for less than three years. Assuming a 7.5% return on liquid funds, after-tax returns work out to be 6.8%, 6% and 5.3% respectively for individuals in the 10, 20 and 30% tax bracket. This currently works out higher than the after-tax return from bank fixed deposits.







------------------------------------------
Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds

Top 4 Tax Saver Mutual Funds for 2017

Best 4 ELSS Mutual Funds to invest in India for 2017

1. DSP BlackRock Tax Saver Fund

2. Invesco India Tax Plan

3. Tata India Tax Savings Fund

4. BNP Paribas Long Term Equity Fund



Invest in Best Performing 2017 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact Prajna Capital on 94 8300 8300

--------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Call us on 94 8300 8300

---------------------------------------------

 

Popular posts from this blog

SBI Magnum Tax Gain Scheme 1993 Applcation Form

    https://sites.google.com/site/mutualfundapplications/tax-saving-mutual-funds-elss     Investment Details Basics Min Investment (Rs) 500 Subsequent Investment (Rs) 500 Min Withdrawal (Rs) -- Min Balance -- Pricing Method Forward Purchase Cut-off Time (hrs) 15 Redemption Cut-off Time (hrs) 15 Redemption Time (days) -- Lock-in 1095 days Cheque Writing -- Systematic Investment Plan SIP Yes Initial Investment (Rs) -- Additional Investment (Rs) 500 No of Cheques 12 Note Monthly investment of Rs 1000 for 6 months and quarterly investment of Rs 1500 for 4 quarters.
Read more

Birla Sun Life Tax Plan Online

Invest Birla Sun Life Tax Plan Online   An Open-ended Equity Linked Savings Scheme (ELSS) with the objective to achieve long-term growth of capital along with income tax relief for investment.   After a bad patch from 2008 to 2010, Birla Sun Life Tax Plan has made a big comeback in the last five years, with a particularly good run since 2014. The fund's rankings, which had slipped to two stars in 2011-12, recovered sharply to three-four stars in the last three years. The fund has delivered a particularly large outperformance over its benchmark and peers in the last couple of years. The fund's investment strategy focuses on a diversified and high-quality portfolio, with parameters such as capital ratios and balance-sheet strength used to judge quality. It uses a combination of top-down and bottom-up approaches to take sector/stock positions. The fund avoids highly leveraged plays. Staying more or less fully invested at all times, the fund parks roughly half of its portfoli
Read more

Should you Roll Over 1 year Fixed Maturity Plans?

The period between January and March typically sees an uptick in the launch of fixed maturity plans, or FMPs. Not this year. Instead, fund houses are busy rolling over or extending the tenure of their one- year FMPs launched last year to three years. Investors in one- year FMPs have a choice. Either redeem units or roll over to three years. If you exit now, your gains will be added to your income and taxed in line with your individual slab rate of 10, 20 or 30 per cent. If you stay invested for two more years, you pay 20 per cent tax with indexation benefit. Yields have softened in the past few months on expectations of a rate cut. If the central bank continues its soft monetary stance, yields are likely to fall further. In such a scenario, it makes sense for investors, particularly those in the 30 per cent tax bracket, to roll over their investments and lock in at a higher yield now. In a surprise move, the Reserve Bank of India cut repo rate by 25 basis
Read more

Mutual Fund Review: IDFC Premier Equity Fund

  IDFC Premier Equity Fund, which falls under the presumed high risk group of mid- and small-cap schemes, can rely on astute and timely equity picks. These make it less vulnerable to fluctuations compared with others in the category   IDFC Premier Equity Fund is designed to invest in upcoming, but promising businesses available at cheap valuations, and hold on to these businesses until they reap desired returns. The experiment has been successful so far, and IDFC Premier Equity has emerged as one of the top performing mutual fund schemes in the mid- and smallcap category of equity schemes.    While the scheme is an open-ended equity fund, i.e. open for subscriptions throughout the year, it has a unique philosophy to limit fresh inflows. Thus, while an investor can always take the systematic investment plan ( SIP ) route to invest in the scheme throughout the year, inflows through a lumpsum investment have been restricted. Since inception, IDFC Premier Equity has been opened for l
Read more

IDFC Premier Equity Fund dividend

  IDFC Mutual Fund   has announced dividend under the dividend option of   IDFC Premier Equity Fund Direct-D . The quantum of dividend shall be   R 4.3464 per unit.   The record date has been fixed as May 06, 2015. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara Robeco Equity Tax Saver 8. IDFC Tax Advantage (ELSS) Fund 9. Axis Tax Saver Fund 10. BNP Paribas Long Term Equity Fund You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds Invest in Tax Saver Mutual Funds Online - Invest Online Download Application Forms For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot]
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now